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SCMP Reporter

Belle Holdings to use proceeds from share sale to fund network expansion

Mainland footwear retailer Belle Holdings, owned by the family of Mirabell International Holdings chairman Tang Wai-lam, is planning to raise at least $3.9 billion from an initial public offering early next year, sources familiar with the situation said.

The share sale, to be underwritten by BNP Paribas and Morgan Stanley,  was expected to happen  in the first quarter of next year after  the company finished  its corporate restructuring, the sources said yesterday.

'The company is  considering putting more assets in the listing unit and this lengthens the time of restructuring,' said a source.

Belle operates and owns more than 2,000 stores in the mainland and Hong Kong, of which 1,000 stores are under  its flagship brand while the rest are under the names 'Teenmix', 'Staccato' and 'Joy & Peace'.

Sources said  shoe retailer Mirabell  owned a 6 per cent stake in Belle while Morgan Stanley  held about 10 per cent stake.

The company planned to use the proceeds from the share offering to fund expansion of its retail network in China, the sources said, adding the company  was likely to include its shoe manufacturing business for the listing.

Belle focuses on  the women's footwear market and mainly targets high-income  women who can afford  shoes ranging from 600 to 1,000 yuan per pair.

Analysts said  mainland consumer plays would continue to benefit from strong consumer spending, especially on luxurious goods,  because of the fast-growing economy.

China's per capita gross domestic product reached US$1,700 last year, doubling that in 2000, and market watchers expect it to be quadrupled by 2020.

Benefiting from the strong demand  and the expanding buying power of  mainland consumers, Prime Success International Group, Belle's rival, saw its net profit surge  44.4 per cent to $254.59 million last year on a turnover of $2.62 billion.

Prime Success operates about 2,000 women's footwear outlets under the brand of 'Daphne' in China.

Its share price  jumped 13.4 per cent  this week and was trading at 22.24 times forecast earnings.

belle of the mall

Belle operates and owns more than 2,000 outlets

The shoe retailer mainly targets high-income women

Mirabell owns 6 per cent of Belle and Morgan Stanley 10 per cent



Running slow

Belle same store sales hurt by growth in China e-commerce

Belle International profit down 3.4pc on lower traffic

Belle warns of lower prospect for 2012 profit

Belle International

Mainland footwear retailer plans  $3.9b float after restructuring